The banking system creates money in the sense that it:
a. prints money
b. creates excess reserves from loans.
c. creates loans from excess reserves.
d. creates required reserves from loans.
e. creates loans from required reserves.
c
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The price of a gallon of milk falls. Which of the following is a possible cause?
A) a decrease in the price of oatmeal, a complement to milk B) a discovery that milk cause diabetes C) Milk is a normal good and people's incomes rise. D) a drought that reduces supplies of feed grains fed to cows that produce milk
Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop because he can't find enough workers to harvest it. Though his tomato pickers made an average of $16
59 per hour last year, he said the relatively high wage is not enough to attract local labor to work the fields. In the market for tomato workers, what is TRUE? A) $16.59 is above the equilibrium wage rate B) $16.59 is the equilibrium wage rate C) $16.59 is below the equilibrium wage rate D) Cannot determine where the equilibrium wage rate is in comparison to $16.59 without more information.